OTTAWA — Energy Minister Tim Hodgson faced scrutiny regarding a Crown corporation's decision to award a contract to a U.S.-led joint venture for managing Canada's nuclear laboratories. During a recent session with the House of Commons natural resources committee, Hodgson suggested that the government's commitment to "elbows up" may have different interpretations.

The controversy centers on Atomic Energy of Canada Limited's (AECL) decision to grant a contract to Nuclear Laboratory Partners of Canada Inc. (NLPC), a joint venture led by U.S.-based BWXT. Critics have raised alarms about national security implications, particularly concerning access to Canadian nuclear technology by companies associated with the U.S. Department of Defense. This concern is heightened amid perceptions of threats to Canadian sovereignty during the Trump administration.

The contract, valued at approximately $1.2 billion annually for an initial six-year term, could extend up to 20 years based on performance metrics. It was originally set to commence on September 13, but AECL announced a delay pending a regulatory review by the Competition Bureau. AECL spokesperson Jeremy Latta did not specify when the transition to NLPC would occur or whether it would wait for the Bureau's investigation to conclude.

In the interim, the Canadian National Energy Alliance (CNEA), led by AtkinsRéalis, continues to manage the Canadian Nuclear Laboratories (CNL), which includes the Chalk River Laboratories, known for developing the CANDU reactor.

During the committee meeting, Hodgson engaged in a heated exchange with Conservative MP Corey Tochor. Hodgson emphasized that NLPC's management team is based in Canada, fulfilling a contractual requirement, and that 95% of the contract funds will be spent domestically. He questioned Tochor's stance, asking, "Are you against any American company operating in Canada?" Tochor countered, asserting that the situation contradicts the "elbows up" campaign promise.

Hodgson responded, stating, "'Elbows up' means lots of things," explaining that it encompasses negotiating with various countries and increasing exports. He defended the contract, asserting that the Competition Bureau's review is a standard procedure and does not imply wrongdoing.

The Bureau is currently investigating BWXT's acquisition of Kinectrics to determine its impact on competition in the Canadian medical isotopes market. Hodgson noted that the Bureau operates independently and that the review process is typical in such transactions.

Later in the meeting, Conservative MP Jonathan Rowe introduced a motion to study AECL's decision to award the contract to NLPC. The motion proposed inviting Hodgson and representatives from AECL and other relevant departments to provide testimony. However, Liberal MPs argued that such a study would interfere with the ongoing investigation by the Competition Bureau, leading to a halt in discussions on the motion.